Yihao Gene Files IPO Prospectus: Pioneering Precision Health and Medical Solutions Through Integrated Downstream Partnerships
Yihao Gene was established in 2015,is a company focused on gene technology in precision health and precision medicinea high-tech enterprise specializing in the industrial application of technologies within this field.The Company operates a molecular diagnostics laboratory in Beijing that complies with U.S. CLIA certification standards, and has established robust high-throughput sequencing and high-performance computing platforms. In the United States, the Company maintains contracted partnerships with molecular diagnostics laboratories. It has also entered into a strategic cooperation agreement with Congenica, a UK-based genomic data analysis company. Yihao Genomics undertook the genomic big data analysis and processing tasks for the 4P “Ten Thousand Pioneers” research project.
After earning his Ph.D. from Oregon Health & Science University, Movic joined a U.S. molecular diagnostics laboratory. Three years later, he was promoted to Technical Director and obtained the certification of Laboratory Director for clinical laboratories in the United States.
During his time in the United States, Movic co-founded three startup diagnostic companies, one of which completed sequencing for nearly 100,000 individuals in 2015.
Founding Vision: The Integration of Genetics and Clinical Practice
Having spent years overseas, Mowick was unaware at the time that a startup boom in gene sequencing was unfolding in China on the other side of the globe.
When discussing the original intention behind starting his business, Mo Weike, founder and CEO of Yihao Gene, stated that at the time, he simply wanted to leverage his academic background in genetics and the clinical training he had received over the years to make a meaningful contribution.
Upon returning to China, Mowei immediately reached out to his undergraduate classmates from the Department of Biological Sciences at Tsinghua University to share his ideas.
After graduating from university, Mowick went to the United States to pursue a doctoral degree, while the other two joined a large central state-owned enterprise and a Fortune 500 company, respectively, working in finance and marketing—fields with little relevance to biology.
However, Mo Weike told a reporter from VCBeat (WeChat Official Account: vcbeat) that the process of building the team went very smoothly: “Once we clearly articulated our vision, they joined us quickly.” Even though not everyone came from this industry, they all shared a strong belief in the life sciences field.
Exploring the Model: Building Small, Specialized Products
With the team now fully assembled, the next step is to proceed with product and market development and positioning. In its early stages, Yihao Gene, like many other companies, focused solely on gene sequencing and provided comprehensive health assessment plans.
Through continuous engagement with diverse clients, Movic gradually recognized that this model was far from perfect. “Whether it’s chip manufacturers or next-generation sequencing companies, they tend to provide an overwhelming amount of information, yet ultimately deliver only vague results to customers.” He began to reflect on what kind of product would truly be valuable to consumers.
“Most genetic testing companies merely perform tests, such as assessing the risk of hereditary diseases. Typically, reports only inform users of their disease risk levels, but few companies provide actionable solutions,” said Moweike.
In his view, the true value of technological application lies in identifying specific products based on research and clinical experience to provide consumers with solutions following genetic testing.
Coverage Areas: Precision Medicine, Precision Health
In an interview, Mo Weike mentioned that Yihao Gene has focused its efforts on the nutritional health sector, identifying users' varying needs for nutrients through genetic testing and thereby providing personalized nutrition plans.
“How do we identify the varying nutritional needs of different individuals? We design our products based on specific diseases,” said Movic. He further explained to reporters that there are underlying reasons why some people have a higher risk of developing certain cancers. Different polymorphisms in oxidative enzymes within the human body can increase the susceptibility to specific cancers, such as pancreatic cancer.
Clinical data indicate that taking specific doses of potent antioxidants can significantly reduce the cancer risk associated with oxidase polymorphisms. “For this patient population, we provide personalized nutritional supplementation plans,” said Mowick.
Currently, Yihao Gene is in negotiations with a Fortune 500 nutritional food company and China’s largest health food company, aiming to deliver more professional and precise nutritional solutions by integrating downstream industry resources.
In the field of precision medicine, Yihao Gene has focused its efforts on genetic disorders. In addition to collaborating with a leading UK-based genetic disorder testing company for whole-genome sequencing, Yihao Gene has also developed specialized diagnostic products for specific genetic conditions.
“The incidence of genetic diseases is very high, and the scope is extensive. We have chosen to focus our efforts on a few specific disease types, aiming for a focused and specialized approach,” said Mo Weike.
Collaborative Alliance: Doing Professional Work
Mowei candidly admitted that, as a startup, it is difficult to allocate sufficient resources to cover every aspect of the value chain. Therefore, Yihao Gene has chosen to collaborate with larger downstream companies to jointly drive market development.
“We are not a nutrition company, and direct-to-consumer sales are prone to raising skepticism. However, by partnering with large corporations and positioning ourselves as a genetic testing service provider, we can project a more professional image,” explained Moweike.
For a startup, collaborating with large corporations is undoubtedly challenging. However, these established players are eager to achieve breakthroughs in their products, striving for ultimate efficacy and efficiency. This presents a strategic entry point for Yihao Genomics. Beyond merely advancing products, Yihao Genomics also participates in the early-stage R&D processes of these large corporations.
“Although we have not been in the nutrition and health sector for long, we possess a strong technical background and substantial accumulated expertise,” said Moweike. “Being small yet specialized is highly valued by large corporations.”
Moving forward, the company will further advance product development in collaboration with third-party partners. In addition to sequencing services, future efforts will encompass the research and development of supporting reagents and instruments. Beyond nutritional health products, sequencing offerings will expand to include other food nutrition testing areas, such as nutritional metabolism and gut microbiota metabolism.
In an interview with VCBeat, Mowick stated, “Our business model necessitates close collaboration with third parties, and our next strategic steps will be planned in sync with relevant companies based on this model.”